The process and procedures for Establishing a Language Training Company in Vietnam have gained attention from those with an interest in the education sector.
According to a survey conducted by Q&ME, the three main reasons why Vietnamese individuals pursue language learning include the desire for academic credentials, the aspiration for better-paying job opportunities, and the goal of continuous personal and familial improvement.
This illustrates that the demand and desire for language learning in Vietnam span across various ages, genders, and income levels. Establishing a language training company remains an appealing prospect, inviting determined and passionate investors and founders to share the market.
In this article, Warren B aims to provide comprehensive knowledge and insights into the documentation and procedures for establishing a language training company. This information is intended to facilitate a smooth registration and expansion process for individuals looking to operate in the education sector in Vietnam.
Conditions for Establishing a Language Training Company in Vietnam
As per the regulations in Appendix IV of the Investment Law of 2020 (regarding Vocational Education Activities), language teaching and training fall under the category of a conditional business sector. Therefore, the conditions for registering the establishment of a language training company include specific requirements to align with the nature of the industry.
--> Read more: Setting up a company in Vietnam – 6 regulations foreign investors must know
Article 2 of the Regulations on Organization and Establishment of Language Training Centers (accompanied by Circular No. 21/2018/TT-BGDĐT dated August 21, 2018) clarifies three types of activities and establishment of language training companies:
- Language training centers established by the state.
- Language training centers established by individuals or organizations within the country.
- Language training centers established by foreign individuals or organizations contributing either partially or entirely to the establishment.
From this, it can be concluded that any individual with civil capacity, along with economic organizations and entities established legally, can register to establish a language training company.
The conditions for establishing a language training company are also outlined in Article 48 of Decree No. 46/2017/ND-CP, specifically:
- The team of trainers, staff, and teachers involved in training must meet the prescribed standards and align with the teaching model of the center/company (as stipulated in Circular No. 02/2020/TT-BGDĐT effective from March 23, 2020).
- The company must have suitable facilities, equipment, and financial resources to ensure the quality of operations in line with the center’s development plan.
--> Read more: Setting up a company in Vietnam – 6 regulations foreign investors must know
In addition, based on Clause 2, Article 6 of the Mechanism for Operation and Organization of Language Centers, the person holding the position of Director of the company/language training center must meet the following criteria:
- Competent management capability.
- Good moral character.
Graduated with a degree in foreign languages or holds a university degree with a minimum Level 3 foreign language certificate (according to the 6-level foreign language proficiency framework used in Vietnam or its equivalent). - Possesses skills and experience in the specialized management and teaching of foreign languages.
- Appointed directly by the Director of the Department of Education and Training, with a term not exceeding 5 years.
- Documentation for Registering the Establishment of a Language Training Company
The required documentation for registering the establishment of a language training company includes:
- Letter of request for registering the establishment of the language training company.
- Articles of incorporation for the language training company.
- List of members and shareholders if it’s a partnership or a limited liability company with two or more members.
- List of founding shareholders and foreign shareholders if it’s a joint-stock company.
- Power of attorney if there is authorization for the representative registering the establishment.
- Copy of ID card, citizen card, passport, etc., and corresponding personal documents if an individual is registering. Copy of the establishment decision, business registration certificate, etc., if an entity or economic organization is registering.
Because language training falls under the category of business sectors with conditions, the registration process for establishing a language training company also requires approval for educational activities.
As per Clause 2, Article 47 of Decree No. 46/2017/ND-CP, amended and supplemented by Clause 20, Article 1 of Decree No. 135/2018/ND-CP, the application for a license to operate in the education sector includes:
- Application for a license to operate in the education sector.
- Copy, along with the original, of the decision to establish the center.
- Internal regulations of the center during its operation in the education sector.
- Report on teaching conditions, facilities, teaching quality, management board, teaching materials, etc.
- Certificate of the right to use housing, land, and legal funding sources of the company/center.
For detailed information on the procedures, preparation of documents, and the process of establishing a language training company, as well as to learn more about the support process for business clients at Warren B during the company registration, clients can contact the hotline at (+84) 915 704 883.
We sincerely appreciate your attention.